The CP49 notice is sent by the IRS to notify taxpayers that their current-year refund has been applied to a prior-year tax debt. This notice explains how much of the refund was used to satisfy the previous year’s balance.
Key points about CP49:
- The notice provides a breakdown of the refund amount and how much was applied to the prior year’s debt.
- It specifies the remaining balance, if any, and provides instructions on how to handle any remaining debt.
- Taxpayers should review the notice carefully to verify the accuracy of the offset and contact the IRS if they believe the refund was incorrectly applied.
CP49 notices are issued when the IRS applies a taxpayer’s refund to previous tax liabilities, reducing or eliminating the refund amount.